Information systems have now changed the world of business and so also the way people work. Traditionally, organizational structures are based on location- specific activities and face-to-face communication. With the advancement of information systems, organizations now operate in a distributive environment, with flexibility in the nature and way of work. This is what we call e-organization or virtual organization, which does not have a central geographical location.
This organization interacts essentially through computer networks. By nature, this type of organization outsources most of their functions, because of their borderless operations and market network. Most of the global consulting and hi-tech organizations operate creating virtual organization, leveraging the information systems. In virtual organizations, which may either be temporary or permanent, virtual team and virtual projects are developed.
Rosabeth Moss Kanter (2001) mentioned about the radically transformative nature of the global network, i.e., the new e-world, which connects every one with everyone else. This requires new operating environment, new forms of business, working and organization. To survive in this era of e-revolution, organizations need to be innovative, shifting from their traditional hierarchical bureaucratic systems and structure. Kanter identified four key elements of an effective organizational e-culture.
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First, there should be an improved strategy to come out with new products and services, followed by the urge to become big through partnerships and collaborations and the urge to operate as integrated communities, removing the internal barriers. Finally, it should become talent dependent or driven.
E-organizations have three important characteristic features. These are:
i. Management of production process, encompassing procurement, stock replenishment, payment processing and control over vendor and production activities through electronic links
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ii. Management of customer-centric activities, encompassing marketing, selling, processing of customers’ orders and extending support to customers through electronic information systems
iii. Managing internal processes, encompassing employee services, training, information sharing and even recruiting through electronic applications based on this premises, we have illustrated new forms of organizations.